Shumba Energy announce first revenues

Shumba Energy Ltd, a Botswana-based coal mining and energy development company, is pleased to announce that its trading division has generated the first revenues for the Company.

According to a statement from the company, to date Shumba has sold over 1,000 tonnes of coal to customers in the regional market. As previously reported, Shumba Energy established its coal trading division, SCT, in 2015 as a result of the demand from future off-takers of the Company’s export coal products. It states that SCT was founded to manage trade of coal from projects owned by the Company as well as other Botswana coal producers in order to develop and grow the market for low-cost, high-quality Botswana coal with regional customers.

“To support its coal trading business, the Company has brought on experienced coal industry professionals. In addition, Shumba Energy is looking to further leverage its partnership with international coal logistics and marketing experts HMS Bergbau AG as announced earlier this year,” reads the statement. The regional market for coal is enormous, with industrial demand for thermal coal sitting at over 20 million tonnes per annum and global seaborne coal prices returning to levels last seen before the
2007 recession.

Mashale Phumaphi, Managing Director of Shumba Energy, said: “The management of Shumba Energy believe that the future of the trading business is immensely positive. As a next step we are looking at setting up our own wash plant as well as concluding the licensing for our own mines. In addition to receiving the first revenues for the Company we are also developing a market and client base for our own coal, as well as other Botswana miners.”

Shumba Energy was established in 2011 to provide the SADC region with low-cost coal and energy. The Company is reaching its development objectives and now controls a significant portion of advanced energy projects in Botswana, including over 4.5 billion tonnes of coal for thermal energy.